2. Corporate strategy
Top level management formulate for overall
organization
It depends on the outcome of SWOT analysis.
A corporate-level strategy affects a company's
finances, management, human resources, and
where the products are sold.
The purpose of a corporate-level strategy is to
maximize its profitability and maintain its financial
success in the future.
A corporate-level strategy is utilized to help
increase competitive advantage over its
competitors and to continue to offer a unique
product or service to consumers.
3.
4. Stability strategy
A stability strategy involves maintaining the status quo or
growing in a methodical, but slow, manner.
It continues to serve the public in the same product or
service, market, and function sectors as defined in its
business definition.
5. Types of stability strategy
No change strategy
Pause and proceed strategy
Profit strategy
6. Types of stability strategy
No change strategies
Taking no decision sometimes, is a
decision too!
This strategy is relevant in predictable and
certain external environment and stable
organizational environment.
Small and medium sized firms rely on this
strategy
7. Pause/proceed with caution strategies
It is employed to test the ground before moving
ahead with a full-fledged corporate strategy
The purpose is to let the system adapt to the
new strategies.
It is deliberate and conscious attempt
8. Profit strategy
It is assumed that the problem is short lived. Only
motive is sustaining profitability for a temporary
phase
It works only if the problems are really short lived
9. Expansion Strategies
These are pursued basically to accelerate the
pace of growth of an organisation.
Most organisations chase expansion in order
to exploit market opportunities.
Expansion helps a firm dominate the market
and gain control over competition.
10. Types of expansion strategy
Expansion through concentration
Expansion through integration
Expansion through diversification
Expansion through cooperation
Expansion through internationalisation
11. Expansion through concentration
Here growth happens by concentrating resources on few
things that the organisation can do better than rivals.
Expansion through concentration can be undertaken
through three strategies, namely market penetration,
market development and product development.
12. Methods of cocentration
Market Penetration:
It is the strategy of a firm that directs its resources to the
profitable growth of a single product, in a single market
with a single dominant technology.
Increasing sales to current customers.
Woo customers from competitors’ products
Convert non-users into users
13. Market Development
It consists of marketing existing products in new markets.
The firm tries to achieve growth by finding new uses for
the existing products and tap new customers on that basis
(within the country or outside the country).
The firm can add new channels of distribution to expand
the customer reach of the product.
14. Product Development
This strategy tries to achieve growth through new
products in existing markets.
The new products in this case are not essentially new
products, but improved versions of an existing product.
usually carried through;
Quality improvement
Feature improvement
Style improvement
18. Expansion through diversification
A firm can expand its operations by launching new
products or new lines of business.
It can enter new markets as well.
A diversified firm is armed with a portfolio of products or
businesses that help it to strengthen its position in more
than one industry or market.
19. Expansion through cooperation
Expansion strategies through cooperation include joint
ventures, mergers and acquisitions strategic alliances and
consortia. These are also known as combination
strategies.
Joint venture.
Merger &Acquisition
Strategic alliances
20. Expansion through internationalisation
To market their products and services internationally,
firms pursue this path. Keeping political, social, legal risks
in mind, firms need to step into this arena carefully.
International expansion is a different ball game
altogether.
International Strategy
Multi-Domestic Strategy
Global Strategy
21. Retrenchment strategies
It sees the desirability of or necessity for
reducing its product or service lines, markets,
or functions
It focuses its strategic decisions on functional
improvement through the reduction of
activities in units with negative cash flows.
23. Turnaround strategies
A turnaround is designed to reverse a negative trend and
bring the organisation back to normal health and
profitability.
It usually involves getting rid of unprofitable products,
trimming the workforce, pruning distribution outlets, and
finding other useful ways of making the organisation more
efficient.
24. Divestment strategy
It involves the sale of those units or parts of a business
that no longer contribute to or fit the firm’s distinctive
competence. The firm simply gets out of certain
businesses and sells off units or divisions for various
reasons
25. Liquidation strategy
This is a strategy to be followed as ‘last resort’. When
neither a turnaround nor a divestment seems feasible,
liquidation is used. Liquidation involves selling or
disposing of all or part of an organisation’s assets,
Liquidation is generally followed when-
(i) The future of a unit looks bleak in terms of sales,
profitability etc.
(ii) The unit has unmanageable accumulated losses;
(iii) Some other firm is willing to buy the unit, to avail tax
benefits.
(iv) It is not possible to revive the unit with the existing
resources.
26. Combination strategy
Combination strategies are a mixture of expansion,
stability or retrenchment strategies.
They are a hybrid variety and can be applied in a firm
either at the same time in different businesses or at
different times within the same business.